Tag Archives: Tuesday

MGM to sell Bellagio, Circus Circus resorts for more than $5 billion

MGM Resorts International said Tuesday it would sell its Bellagio and Circus Circus resorts in Las Vegas in separate deals valued at about $5 billion, as the US casino operator seeks to monetize its real estate assets and bolster its balance sheet.

Blackstone Real Estate Income Trust will acquire the Bellagio for $4.25 billion through a 95-5 joint venture with MGM and will lease it back to a unit of the casino company for an initial annual rent of $245 million.

MGM said it would sell Circus Circus Las Vegas to an affiliate of Treasure Island owner Phil Ruffin for $825 million.

The divestment comes nine months after MGM, which had a long-term debt of $15 billion as of December 2018, formed a committee to evaluate its real estate portfolio amid its move to an asset-light model.

MGM chief executive officer Jim Murren said the company would use the proceeds from both the deals to “build a fortress balance sheet” and return capital to shareholders.

Both deals are expected to close in the fourth quarter of 2019.

MGM’s other assets include MGM Grand and MGM Springfield and it also holds stakes in CityCenter and MGM Growth Properties.

In January, MGM announced plans to cut costs and boost growth, proposing to increase annualized adjusted earnings before interest, taxes, depreciation and amortization by $300 million by the end of 2021.

PJT Partners and JP Morgan were MGM’s financial advisers for the Bellagio deal, while Morgan Stanley and CBRE advised on the Circus Circus transaction.

Democratic voters hope for smaller debate stage

Voters gathered on Tuesday to watch a dozen Democratic presidential candidates partake in a spirited debate over health care, taxes, gun control and impeachment. (Oct. 16) Subscribe for more Breaking News: http://smarturl.it/AssociatedPress Website: https://apnews.com Twitter: https://twitter.com/AP Facebook: https://facebook.com/APNews Google+: https://plus.google.com/115892241801867723374 … read more

AP Top Stories 15 P

Here’s the latest for Tuesday, Oct. 15th: Hunter Biden addresses Trump accusations; Cuba Gooding Jr. pleads not guilty; Convictions of Catalan separatist leaders lead to clashes in Northeastern Spain; France’s lower house of Parliament approves IVF bill. Subscribe for more … read more

Clashes in Hong Kong as day of protests begins

Police broke up a scuffle Tuesday between Beijing supporters and pro-democracy protesters in Hong Kong on the 70th anniversary of the founding of Communist China. (Oct. 1) Subscribe for more Breaking News: http://smarturl.it/AssociatedPress Website: https://apnews.com Twitter: https://twitter.com/AP Facebook: https://facebook.com/APNews Google+: … read more